Daewoo Shipbuilding & Marine Engineering (DSME) might have overachieved in newbuilding sales in 2021, but previous barren ordering levels continue to hurt the company.
The company has just reported a third-quarter loss of KRW 54.5bn ($46.2m), a significant increase on the KRW 29.2bn reported 12 months ago.
DSME said sales fell 33.4% to KRW 959.7bn.
"A drop in working days caused by summer holidays and extended rainy days decreased the third-quarter sales, but sales are expected to improve in the fourth quarter," DSME said.
Increased costs such as the rising price of steel plate are hampering any improvement in earnings, the shipbuilder added.
Last week, DSME secured orders for up to four LNG carrier newbuildings from Greece’s Maran Gas Maritime in a potential deal worth over $800m.
Maria Angelicoussis, chairman of Maran parent Angelicoussis Group, inked contracts for two firm 174,000-cbm vessels priced at KRW 486.7bn each.
DSME said Maran Gas has also secured two optional LNG berths for 2025 deliveries. The first two ships are due for delivery in the second half of 2024.
Shipbrokers said these were among the last remaining LNG carrier berths available for 2024 as independent owners move in on any spare space at yards.
This was the second LNG carrier order for DSME announced in the span of a week after QatarEnergy revealed it had firmed up four vessels at the yard under its berth reservation mega deal.
DSME said it has achieved 119% of its reduced annual target of $7.7bn so far this year, winning orders worth a total of $9.19bn.
The company has also been buoyed by reports that it has sold a drillship newbuilding that was originally ordered by a John Fredriksen-backed company that later cancelled the contract.
Turkish Petroleum Corp (TPAO) is said to have has purchased the West Cobalt from DSME for $180m, with delivery expected in the second quarter of 2022.
The drillship was previously ordered by Oslo-listed offshore drilling contractor Northern Drilling but was later cancelled in 2019.
